Battery Giants Stake Their Claim in Robotic Lawnmower Revolution

Following CATL's Lead, Southern China's Largest Battery Unicorn Sunwoda（欣旺达）Bets on Robotic Lawnmowers.

 

Sunwoda Electronics, Southern China's largest battery unicorn, recently announced that its wholly-owned subsidiary, Hong Kong Xinwei Electronics, plans to sign a partnership agreement with general partner Rockets Capital. Together, they will invest in the partnership enterprise Rockets Capital Mars L.P.

 source: Positec

According to the announcement, the partnership's maximum total capital contribution will be $25 million, with Hong Kong Xinwei, as a limited partner, committing up to $6.75 million. The specific contribution ratio will be determined based on subsequent capital commitments to the partnership. All contributions will be invested in Positec Inc., also known as the Positec Group. Notably, Rockets Capital is a professional private equity investment institution initiated by XPeng Motors as the cornerstone investor.

 

As early as December last year, Rockets Capital had already participated in Positec Group's first round of equity financing, which exceeded $250 million. At that time, besides Rockets Capital, several renowned investment institutions joined the round, including Puquan Capital (jointly funded by CATL), Frontier Investment, and New Ally Capital. Now, with both the "Battery King" CATL and Southern China's largest battery unicorn Sunwoda making high-profile investments in Positec Group, industry observers are taking notice. What unique appeal does Positec have that attracts such competitive pursuit from capital markets?

 

Crowned by Patents and Sales

 

Positec is a high-tech enterprise focused on power tool electrification and robotization, occupying an extremely important position in China's power tool manufacturing and export trade sectors. The company owns several well-known brands, including its self-developed high-end power tool brand "Worx" and the impressive robotic vacuum brand "NOESIS." Additionally, through acquisitions, Positec has incorporated the German tool brand "Kress," with its profound professional heritage, and the American "Rockwell" power tool brand, which holds a globally leading position in industrial automation solutions. These acquisitions have greatly enriched Positec's brand portfolio, expanded its technological resources, and significantly enhanced its competitiveness and influence in international markets.

 

Taking the robotic lawnmower segment as an example, since Positec decisively entered this field in 2011, its "Worx" smart robotic lawnmowers have achieved remarkable success. Global cumulative sales have successfully surpassed one million units, and in terms of market share across all channels, Worx has established itself as the undisputed leading brand in the industry.

source: Worx

In 2020, Positec's smart robotic lawnmower sales reached 170,000 units, with sales of approximately $80 million. By 2021, sales volume had surged to 300,000 units, with corresponding revenue growth to about $140 million, successfully topping the global modern channel sales rankings. Furthermore, Positec's smart robotic lawnmowers have earned the prestigious "Best Seller" recognition on Amazon platforms in the United States and Germany for three consecutive years, fully demonstrating their excellent quality and widespread recognition in international markets. According to the latest data from Q1 2024, Positec's smart robotic lawnmowers captured an impressive 59% market share in German modern channels, further solidifying its leading position in the European market.

 

To date, Positec has filed over 1,300 global patent applications in the robotic lawnmower field, demonstrating its formidable technological R&D capabilities.

 

With Sunwoda's entry, industry observers are speculating whether another "cross-sector leader" will emerge in the robotics race. Previously, on its investor interaction platform, Sunwoda indicated that its battery products are currently being used in robotic vacuum cleaners and may have opportunities to be applied in humanoid intelligent robots in the future.

 

In terms of investment cooperation, Sunwoda, as a limited partner, has invested in Shenzhen Dami Growth Angel Investment Partnership. This fund has invested in Morpx Technology, a provider of highly adaptable flexible pressure sensor (electronic skin) solutions. Additionally, Sunwoda has introduced multiple products from the Pudu Robotics family into its own factories.

 

Conclusion

 

In the blue ocean market of robotic lawnmowers that awaits development, capital's attention is focused not only on Positec's own strengths but also on this highly potential market. As one of the three major players in garden robotics, robotic lawnmowers have attracted significant attention in recent years. Market research firms predict that the global robotic lawnmower industry will reach $2.3 billion in 2024 and climb to $3.5 billion by 2026, demonstrating robust growth momentum.

 

source: Worx

Undoubtedly, the robotic lawnmower market is flourishing, with rapidly expanding scale. This is driven by two main factors. On the technical side, navigation technology has evolved from traditional to intelligent precision, smart controls have made operation more convenient, and energy utilization efficiency has significantly improved, optimizing product performance and greatly enhancing user experience. On the demand side, households' pursuit of high-quality garden living, commercial venues' need for efficient lawn management, and the promotion of green, energy-efficient mowing methods under environmental protection concepts have all opened up vast opportunities for the robotic lawnmower market.

 

Chinese smart robotic lawnmowers, with their high cost-performance ratio, continuously iterating technology, and designs tailored to overseas users' needs, are accelerating their expansion in foreign markets and gradually gaining prominence in the global robotic lawnmower sector.

 

Beyond battery industry giants CATL and Sunwoda entering the robotic lawnmower space, "power bank leader" Anker Innovations, security industry leader Hikvision, and "first humanoid robot stock" UBTECH have all joined the fray.

 

Currently, the robotic lawnmower market resembles a calm lake surface, not yet disturbed by the tidal waves of a price war. Companies are tacitly focusing on enhancing product added value, refining user experience, and strengthening brand building to forge their competitive barriers. However, as the market pie grows and more new players eagerly attempt to enter, whether this market will fall into an intensely competitive spiral in the future remains as unclear as viewing flowers through fog, full of unknowns. This uncertainty makes the future direction of the robotic lawnmower industry like a mysterious treasure, attracting close attention from all sides as they delve deeper into exploration.